Founder of China’s Largest Altcoin Foresees Regulatory Impact on Bitcoin Price Following Halving
The highly anticipated Bitcoin halving has sparked widespread speculation about its impact on the market. Sunny Lu, founder of VeChain, China’s largest altcoin, has shared his insights on the upcoming halving, suggesting that regulatory actions will play a significant role in determining Bitcoin’s trajectory post-event.
Lu highlights the importance of regulatory developments in shaping Bitcoin’s price movements. In comparing the current halving cycle with the previous one in May 2020, he emphasizes the evident influence of regulation. According to Lu, regulatory actions since the last halving have contributed to significant price fluctuations.
Highlighting some notable instances, Lu points out that the price of Bitcoin reached all-time highs following the previous halving. The catalysts behind these peaks were identified as Coinbase’s IPO in April 2021, the approval of Bitcoin futures ETFs in November of the same year, and the subsequent approval of spot BTC ETFs in January 2022.
Lu notes that this cycle differs from previous ones due to the combined impact of regulatory developments and the psychological effects of the halving on the market. He explains that there has been a transition from a traditional approach, solely considering supply dynamics, to a more comprehensive analysis of macroeconomic factors.
Concluding his remarks, Lu states that the power of macro forces has become more prominent in influencing Bitcoin’s price, rather than the mathematical consequences of the halving itself. He highlights the decreased supply released into the market as an intrinsic factor behind price hikes but emphasizes the increasing significance of macroeconomic considerations.
It is important to note that the opinions expressed by Lu are not intended as investment advice.